Industrials Quarterly Update
Transcript of Industrials Quarterly Update
IndustrialsQuarterly Update
Deloitte Corporate Finance LLC | www.investmentbanking.deloitte.com
Q2 2021
Looking ahead to 2021, the manufacturing sector recovery may take longer to reach pre-pandemic levels than originally anticipated. The sector is expected to experience a decline in annual manufacturing GDP growth levels for 2020-2021, with a forecast of -3.7% for 2020 and -5.4% for 2021. In the second half of 2021, most manufacturers will focus on increasing agility in operations by investing in digital initiatives across the production and supply network to better respond to disruptions caused by COVID-19.
April 19, 20215 – Melrose Industries has agreed to sell data centercooling supplier Nortek Air Management to Madison Industries for atotal transaction value of approximately $3.625 billion. As well asserving other industries, Nortek provides cooling units, heatexchangers, and Computer Room Handling Air Units (CRAH) to datacenters.
April 20, 20216 – EQT Infrastructure announced its acquisition ofFirst Student and First Transit, two subsidiaries of FirstGroup plc, for$4.6 billion. Headquartered in Cincinnati, Ohio, First Student and FirstTransit are market leading providers of essential transportationservices to schools and communities in North America.
June 20, 20217 – Westlake Chemical Corporation (NYSE:WLK)entered into a definitive agreement to acquire the North Americanbuilding products businesses of Boral Industries Inc. for $2.2 billionon June 20, 2021. Boral’s North American building productsoperations employ approximately 4,600 people across 29manufacturing sites which produce roofing, siding, trim and shutters,decorative stone, and windows.
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Industrials trends
Who we areDeloitte Corporate Finance LLC is a leading global middle market M&A adviser. Our professionals have extensive knowledge in the industrials space and use their experience to help clients create and act upon opportunities for liquidity, growth, and long-term advantages.
ContactsWill FrameManaging [email protected]+1 (312) 486-4458
Eric AndreozziManaging [email protected]+1 (704) 333-0518
Tony BlanchardManaging [email protected]+1 (312) 486-1640
Kevan FlaniganManaging [email protected]+1 (213) 688-6560
William KerkamManaging [email protected]+1 (980) 312-3613
In the news
In this update• Industrials trends• Economic outlook• Industry analysis• Select M&A transactions• Appendix
This update will focus on news and trends in the following areas:• Aerospace and Defense• Engineering and Construction• Manufacturing• Oil and Gas
Quarterly update | Q2 2021 | Industrials
Global aerospace and defense industry revenue is expected to recover in 2021 following a difficult 2020. This recovery will likely be uneven across two key sectors, commercial aerospace and defense. The commercial aerospace sector is expected to slowly recover, as travel demand isn’t expected to return to pre-COVID-19 levels before 2024. Meanwhile, the defense sector could face minor cost increases and schedule delays in 2021 given the disruption in the global supply chain.
Aerospace and Defense1 Engineering and Construction2
COVID-19 caused the E&C industry to lose $60.9 billion in GDP in 2020. The industry was able to respond faster than others due to strong order books and demand from the residential segment. To succeed in the shifting industry landscape, connected technologies and an increase in associated investments may help firms realize new operational efficiencies. Companies are likely to help other industries unlock -------the future of workplace ----------solutions.
Manufacturing3
In 2021, global oil demand is expected to recover strongly but remain below pre-COVID-19 levels.A significant reallocation of capital will likely happen in sectors/ companies that generate a measurable, beneficial social or environmental impact alongside a healthy financial return—and the industry should be ready to capitalize on it. There are also possible policy changes to emerge from the Biden administration’s commitment to clean energy, such as methane restrictions, fuel-economy standards, etc.
Oil and Gas4
Macroeconomic outlook
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Note:An ISM purchase managers index value above 50 signals economic expansion.
ISM purchase managers index5 Industrial production index(YoY growth)6
Industrials sector outlook
Quarterly update | Q2 2021 | Industrials
US treasury yield curve(nominal vs. real)2
US gross domestic product($ in trillions)1
US unemployment rate(percent unemployed)3
Industrial production indexISM purchase managers index
ISM non-manufacturing indexand consumer confidence index4
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ISM Nonmanufacturing Consumer confidence
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(2.0%)(1.5%)(1.0%)(0.5%)0.0%0.5%1.0%1.5%2.0%2.5%
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Industrials sector breakdown and trading statistics
Public comparables three-year stock market performance2
S&P 500 index 53.3 percentNASDAQ composite index 90.1 percentIndustrials index 37.0 percent
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Last Twelve Months NTM
Sector Number of Companies
% of 52 Week High
Median LTM
EBITDA
Median EBITDA Margin
Median Enterprise
Value
EV/Revenue
EV/EBITDA
EV/EBITDA
($ in Millions)
Automotive 17 86.3 % $6,151.2 9.2 % $85,946.5 0.8 x 9.3 x 8.1 x
Building products, electric products, industrial safety 19 93.9 492.3 12.9 4,755.5 1.3 12.5 10.4
Capital equipment & rental services 22 95.3 408.3 14.6 3,850.6 1.3 10.7 9.2
Distribution, transportation & logistics 19 94.7 1,072.4 10.0 12,448.3 1.1 13.0 10.5
Engineering & construction 29 83.1 226.3 7.2 2,299.0 0.4 8.0 7.2
Metals, plastics & paper packaging 16 92.1 1,015.2 15.0 9,334.1 1.4 9.4 8.6
Specialty chemicals 11 94.2 893.5 17.6 9,661.7 2.5 12.7 10.1
Industrials Sector 133 91.4 % $1,513.90 12.4 % $18,327.95 1.2 x 10.8 x 9.2 x
Quarterly update | Q2 2021 | Industrials
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S&P 500 index NASDAQ Composite Index Industrials index
Announced Date Target/Acquiror Business DescriptionEnterprise Value (EV)
EV/Revenue
EV/EBITDA
Select large industrials M&A transactions
Annual US industrials M&A transaction volume2
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($ in Millions)
Quarterly update | Q2 2021 | Industrials
Apr-21
Nortek Air Management Business of Nortek Inc.
Nortek Air Management provides custom heating, ventilation, and air conditioning (HVAC) solutions for commercial, industrial, and institutional indoor environments in North America.
$3,625.0 2.2 x 12.5 xMadison Industries US Holdings Corporation
Apr-21
Knoll, Inc. Knoll, Inc., together with its subsidiaries, designs, manufactures, markets, and sells commercial and residential furniture, accessories, and coverings for the workplace and residential markets in the United States, Canada, Europe, and internationally.
2,040.5 1.8 x 14.4 xHerman Miller, Inc.
Apr-21First Student, Inc./First Transit Inc.
First Student, Inc./First Transit Inc. represents the combined operations of First Student, Inc. and First Transit Inc. First Student, Inc., a school bus operator, provides student transportation services for schools and districts in the United States and Canada.
4,555.0 NA NA
EQT Partners AB; EQT Infrastructure V
Jun-21
North American Building Products Business of Boral Industries Inc. North American building products businesses of Boral
Industries Inc. comprises roofing, siding, trim and shutters, decorative stone, and windows manufacturing operations.
2,150.0 2.0 x NAWestlake Chemical Corporation
Jun-21Raven Industries, Inc. Raven Industries, Inc., a technology company, provides
various products to customers in the industrial, agricultural, geo-membrane, construction, aerospace and defense, and commercial lighter-than-air markets worldwide.
2,119.3 5.7 x NMCNH Industrial N.V.
1,923
2,131
2,346
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Recent transactions
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Quarterly update | Q2 2021 | Industrials
Last Twelve Months
Target/Acquiror Sub-SectorAnnounced
DateClose Date
LTM Revenue
LTM EBITDA
EBITDA Margin
Enterprise Value (EV)
EV/ Revenue
EV/ EBITDA
($ in Millions)Assets of Woods End Laboratories
Research and Consulting Services Apr-21 Pending $1.8 $0.9 50.0 % $2.3 1.3x 2.5x Deveron Corp.; A&L Canada Laboratories Inc.
Wilhelmina International, Inc.Diversified Support Services Apr-21 Pending 39.0 0.5 1.3 47.5 1.2 96.7
Modells Sporting Goods Online, Inc.
Bolder BioPATH, Inc.Research and Consulting Services Apr-21 Apr-21 12.9 2.6 20.0 53.2 4.1 20.6
Inotiv, Inc.
Nortek Air Management Business of Nortek Inc.Industrial Machinery Apr-21 Jun-21 1,675.2 290.0 17.3 3,625.0 2.2 12.5
Madison Industries US Holdings Corporation
Knoll, Inc.Office Services and Supplies Apr-21 Pending 1,160.6 141.4 12.2 2,040.5 1.8 14.4
Herman Miller, Inc.
Kansas City SouthernRailroads Apr-21 Pending 2,606.9 1,402.2 53.8 33,654.7 12.9 24.0
Canadian National Railway Company
First Student, Inc./First Transit Inc.Trucking Apr-21 Pending NA NA NA 4,555.0 NA NA
EQT Partners AB; EQT Infrastructure V
Substantially All of the Assets and Operations of Design Space Modular Buildings Inc. Construction and Engineering May-21 May-21 81.0 32.0 39.5 260.0 3.2 8.1
McGrath RentCorp
Lionpoint Holdings, Inc.Research and Consulting Services May-21 May-21 30.1 6.9 22.9 90.0 3.0 13.0
Alpha Financial Markets Consulting plc
House & Garden/Humboldt Wholesale/Allied Imports & Logistics/South Coast Horticultural Supply Trading Companies and Distributors May-21 Jun-21 NA NA NA 125.0 NA NA
Hydrofarm Holdings Group, Inc.
JSI Store Fixtures, Inc.Office Services and Supplies May-21 May-21 70.0 10.0 14.3 90.0 1.3 9.0
LSI Industries Inc.
Barber-Nichols Inc.Aerospace and Defense Jun-21 Jun-21 56.0 NA NA 84.2 1.5 NA
Graham Corporation
Insulated Metal Panels Business of Cornerstone Building Brands, Inc. Building Products Jun-21 Pending 335.0 NA NA 1,000.0 3.0 NA
Vulcraft Canada, Inc.; Nucor Insulated Panel Group Inc
Raven Industries, Inc.Industrial Conglomerates Jun-21 Pending 374.3 47.2 12.6 2,119.3 5.7 NM
CNH Industrial N.V.
Lydall, Inc.Industrial Machinery Jun-21 Pending 790.6 88.5 11.2 1,356.0 1.7 15.3
Unifrax I LLC
Cali Bamboo, LLCBuilding Products Jun-21 Jun-21 171.6 13.8 8.0 103.9 0.6 7.5
Victoria plc
Median $81.0 $13.8 15.8% $192.5 2.2x 13.7x
Mean $508.8 $177.1 21.9% $3,075.4 3.2x 22.1x
Appendix
Public comparables analysis
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Quarterly update | Q2 2021 | Industrials
Last Twelve Months
Company (Ticker) % of 52
Week HighLTM
RevenueRevenue
CAGR (3 Yr)LTM
EBITDAEBITDA Margin
Enterprise Value ("EV")
($ in Millions)
AutomotiveBayerische Motoren Werke Aktiengesellschaft (DB:BMW) 94.0 % $116,945.3 1.9 % $14,167.9 12.1 % $165,138.3 1.4 x 11.7 x N/ADaimler AG (XTRA:DAI) 82.3 193,855.9 (1.5) 8,751.0 4.5 214,287.8 1.1 24.5 8.3 xFord Motor Company (NYSE:F) 88.1 155,900.0 (6.8) 11,148.0 7.2 169,991.5 1.1 15.2 13.7 General Motors Company (NYSE:GM) 87.4 137,237.0 (5.4) 13,246.0 9.7 139,027.5 1.0 10.5 7.1 Honda Motor Co., Ltd. (TSE:7267) 94.2 142,827.5 (5.0) 13,017.1 9.1 97,984.7 0.7 7.5 9.4 Hyundai Motor Company (KOSE:A005380) 84.0 91,595.8 3.6 5,366.8 5.9 75,727.4 0.8 14.1 10.3 Isuzu Motors Limited (TSE:7202) 77.7 19,130.8 (2.7) 2,040.3 10.7 10,228.0 0.5 5.0 4.7 Kia Corporation (KOSE:A000270) 94.5 50,365.0 4.7 3,585.3 7.1 13,395.5 0.3 3.7 3.9 Mazda Motor Corporation (TSE:7261) 68.5 32,191.0 (6.0) 1,348.1 4.2 5,767.4 0.2 4.3 4.0 Mitsubishi Corporation (TSE:8058) 88.1 141,198.1 19.4 6,506.3 4.6 96,165.6 0.7 14.8 13.8 Renault SA (ENXTPA:RNO) 65.7 62,324.1 (9.6) 5,796.2 9.3 59,272.7 1.0 10.2 9.5 SAIC Motor Corporation Limited (SHSE:600104) 78.7 121,116.8 (3.3) 3,636.8 3.0 38,447.9 0.3 10.6 6.9 Subaru Corporation (TSE:7270) 85.2 30,067.7 (6.0) 3,323.0 11.1 11,236.5 0.4 3.4 2.9 Suzuki Motor Corporation (TSE:7269) 76.3 33,666.1 (5.4) 3,675.3 10.9 20,889.3 0.6 5.7 5.4 Tesla, Inc. (NasdaqGS:TSLA) 96.1 24,578.0 42.3 2,172.0 8.8 86,141.8 3.5 39.7 60.4 Toyota Motor Corporation (TSE:7203) 97.0 281,387.0 (2.5) 39,133.3 13.9 331,222.1 1.2 8.5 11.1 Volkswagen AG (XTRA:VOW3) 93.9 283,505.8 (0.2) 34,162.3 12.0 287,322.4 1.0 8.4 7.8
Median 86.3 % $119,031.1 (3.0) % $6,151.2 9.2 % $85,946.5 0.8 x 9.3 x 7.8 x
Mean 84.7 % (1.6) % 8.5 % 0.8 x 9.9 x 7.9 x
Building products, electric products, industrial safetyBeacon Roofing Supply, Inc. (NasdaqGS:BECN) 80.0 % $6,798.8 12.7 % $410.5 6.0 % $5,119.2 0.8 x 12.5 x 9.9 xBlueLinx Holdings Inc. (NYSE:BXC) 40.3 2,637.3 23.8 48.3 1.8 872.6 0.3 18.1 5.2 BMC Stock Holdings, Inc. 95.1 3,626.6 5.9 236.6 6.5 2,235.7 0.6 9.4 N/ABoral Limited (ASX:BLD) 78.1 4,075.7 2.9 645.9 15.8 5,228.4 1.3 8.1 11.4 Builders FirstSource, Inc. (NasdaqGS:BLDR) 97.5 7,280.4 15.0 492.3 6.8 4,556.5 0.6 9.3 6.0 Compagnie de Saint-Gobain S.A. (ENXTPA:SGO) 92.3 47,775.8 (2.2) 5,083.6 10.6 36,820.5 0.8 7.2 6.6 Cornerstone Building Brands, Inc. (NYSE:CNR) 91.5 4,889.7 23.8 546.7 11.2 4,608.0 0.9 NM 7.7 Eagle Materials Inc. (NYSE:EXP) 93.4 1,383.5 5.4 380.8 27.5 4,755.5 3.4 12.5 10.7 Emerson Electric Co. (NYSE:EMR) 98.7 18,376.0 1.0 3,686.0 20.1 50,855.2 2.8 13.8 15.3 Gibraltar Industries, Inc. (NasdaqGS:ROCK) 91.5 898.2 3.5 105.5 11.7 1,519.0 1.7 14.4 12.6 Huttig Building Products, Inc. (NasdaqCM:HBP) 41.7 812.0 1.2 2.9 0.4 231.6 0.3 NM NMJames Hardie Industries plc (ASX:JHX) 95.2 2,558.4 12.3 586.9 22.9 10,144.0 4.0 17.3 17.7 Martin Marietta Materials, Inc. (NYSE:MLM) 99.5 4,422.3 6.6 1,251.2 28.3 20,851.9 4.7 16.7 16.7 Owens Corning (NYSE:OC) 94.8 7,160.0 3.8 1,216.0 17.0 10,486.2 1.5 8.6 7.1 Summit Materials, Inc. (NYSE:SUM) 94.8 2,222.1 6.8 425.8 19.2 4,466.3 2.0 10.5 10.8 U.S. Concrete, Inc. (NasdaqGS:USCR) 74.1 1,478.7 (1.2) 161.1 10.9 1,458.6 1.0 9.1 10.1 USG Corporation N/A 3,336.0 4.6 430.0 12.9 6,787.5 2.0 15.8 N/AVulcan Materials Company (NYSE:VMC) 94.4 4,929.1 7.2 1,213.6 24.6 22,171.8 4.5 18.3 17.8 Wienerberger AG (WBAG:WIE) 97.1 3,889.9 2.3 607.5 15.6 4,386.9 1.1 7.2 7.2
Median 93.9 % $3,889.9 5.4 % $492.3 12.9 % $4,755.5 1.3 x 12.5 x 10.4 x
Mean 86.1 % 7.1 % 14.2 % 1.8 x 12.3 x 10.8 x
Capital equipment & rental servicesAggreko Plc (LSE:AGK) 95.9 % $2,136.3 (7.0) % $721.8 33.8 % $3,833.2 1.8 x 5.3 x 5.0 xAshtead Group plc (LSE:AHT) 97.8 6,376.0 10.7 2,961.4 46.4 21,408.9 3.4 7.2 12.1 Astec Industries, Inc. (NasdaqGS:ASTE) 95.6 1,169.6 (5.1) 54.5 4.7 925.3 0.8 17.0 11.3 Caterpillar Inc. (NYSE:CAT) 99.2 53,800.0 (3.9) 10,690.0 19.9 113,884.6 2.1 10.7 16.0 Cervus Equipment Corporation (TSX:CERV) 55.7 878.2 (0.4) 10.2 1.2 360.5 0.4 35.5 6.0 CNH Industrial N.V. (NYSE:CNHI) 91.7 28,079.0 (0.8) 2,543.0 9.1 36,252.5 1.3 14.3 13.8 Cummins Inc. (NYSE:CMI) 95.8 23,571.0 (0.8) 3,253.0 13.8 29,275.3 1.2 9.0 9.5 Deere & Company (NYSE:DE) 96.0 39,233.0 6.5 6,179.0 15.7 96,554.2 2.5 15.6 16.8 Finning International Inc. (TSX:FTT) 95.5 6,026.8 (1.5) 482.6 8.0 4,755.3 0.8 9.9 7.9 H&E Equipment Services, Inc. (NasdaqGS:HEES) 88.3 1,348.4 3.0 220.9 16.4 2,614.9 1.9 11.8 5.6 Herc Holdings Inc. (NYSE:HRI) 96.3 1,999.0 0.0 308.5 15.4 3,868.0 1.9 12.5 6.3 Korea Shipbuilding & Offshore Engineering Co., Ltd. (KOSE:A00 86.6 13,150.9 1.0 600.5 4.6 9,314.3 0.7 NM 15.9 Manitex International, Inc. (NasdaqCM:MNTX) 68.3 215.5 (10.3) 8.7 4.0 170.2 0.8 19.6 17.6 McGrath RentCorp (NasdaqGS:MGRC) 95.1 570.2 6.1 150.5 26.4 2,168.2 3.8 14.4 8.6 Nishio Rent All Co., Ltd. (TSE:9699) 89.0 1,446.9 4.8 382.5 26.4 1,116.2 0.8 2.9 2.9 Oshkosh Corporation (NYSE:OSK) 99.0 8,273.7 (3.0) 856.0 10.3 6,831.2 0.8 8.0 9.6 Strongco Corporation 88.4 305.8 2.0 18.1 5.9 216.4 0.7 12.0 N/AThe Manitowoc Company, Inc. (NYSE:MTW) 88.5 1,834.1 (4.0) 143.3 7.8 907.1 0.5 6.3 9.2 Toromont Industries Ltd. (TSX:TIH) 99.2 2,836.2 10.9 434.1 15.3 4,799.2 1.7 11.1 13.6 United Rentals, Inc. (NYSE:URI) 98.1 9,351.0 6.4 2,653.0 28.4 24,833.8 2.7 9.4 7.3 Vp plc (LSE:VP.) 88.7 489.5 0.5 128.7 26.3 839.9 1.7 6.5 5.0 Wajax Corporation (TSX:WJX) 74.2 1,197.4 3.0 67.6 5.6 537.8 0.4 8.0 6.2
Median 95.3 % 2,067.6 0.3 % 408.3 14.6 % 3,850.6 1.3 x 10.7 x 9.2 x
Mean 90.1 % 0.8 % 15.7 % 1.5 x 11.8 x 9.8 x
NTM
EV/Revenue
EV/EBITDA
EV/EBITDA
Public comparables analysis (cont.)
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Quarterly update | Q2 2021 | Industrials
Last Twelve Months
Company (Ticker) % of 52
Week HighLTM
RevenueLTM
EBITDAEBITDA Margin
Enterprise Value ("EV")
($ in Millions)
Distribution, Transportation, and LogisticsArcBest Corporation (NasdaqGS:ARCB) 65.9 % $2,988.3 2.2 % $188.3 6.3 % $766.4 0.3 x 4.1 x 5.0 xC.H. Robinson Worldwide, Inc. (NasdaqGS:CHRW) 84.3 15,309.5 3.8 873.4 5.7 11,717.7 0.8 13.4 13.7 Deutsche Post AG (XTRA:DPW) 97.2 71,359.0 5.3 4,938.8 6.9 64,095.1 0.9 13.0 7.8
Echo Global Logistics, Inc. (NasdaqGS:ECHO) 79.8 2,185.0 9.5 56.1 2.6 731.1 0.3 13.0 8.3
Expeditors International of Washington, Inc. (NasdaqGS:EXPD) 96.1 8,175.4 17.0 817.6 10.0 12,448.3 1.5 15.2 15.8
FedEx Corporation (NYSE:FDX) 75.9 69,189.0 8.7 4,456.0 6.4 70,669.8 1.0 15.9 9.4
Forward Air Corporation (NasdaqGS:FWRD) 97.0 1,215.2 3.1 147.1 12.1 2,169.8 1.8 14.8 13.6 Hapag-Lloyd Aktiengesellschaft (DB:HLAG) 96.1 14,148.7 8.9 1,648.0 11.6 22,036.7 1.6 13.4 N/AHub Group, Inc. (NasdaqGS:HUBG) 97.4 3,668.1 5.2 274.1 7.5 1,989.1 0.5 7.3 7.7 J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) 95.5 9,165.3 9.9 1,256.4 13.7 13,786.2 1.5 11.0 11.7 Knight-Swift Transportation Holdings Inc. (NYSE:KNX) 91.0 4,844.0 11.7 896.8 18.5 7,179.3 1.5 8.0 6.7 Kuehne + Nagel International AG (SWX:KNIN) 98.7 21,780.3 3.9 1,275.2 5.9 22,073.2 1.0 17.3 15.2 Landstar System, Inc. (NasdaqGS:LSTR) 94.7 4,089.6 4.7 354.9 8.7 4,325.8 1.1 12.2 12.0 Nippon Yusen Kabushiki Kaisha (TSE:9101) 95.9 15,623.7 (9.7) 1,197.2 7.7 13,056.2 0.8 10.9 9.1 Old Dominion Freight Line, Inc. (NasdaqGS:ODFL) 96.2 4,109.1 5.6 1,072.4 26.1 14,940.2 3.6 13.9 19.0
Ryder System, Inc. (NYSE:R) 80.3 8,925.8 4.3 2,170.8 24.3 10,782.7 1.2 5.0 4.1
United Parcel Service, Inc. (NYSE:UPS) 93.4 74,094.0 9.5 7,893.0 10.7 122,371.7 1.7 15.5 13.7
Werner Enterprises, Inc. (NasdaqGS:WERN) 92.8 2,463.7 3.2 457.3 18.6 2,864.2 1.2 6.3 5.3 XPO Logistics, Inc. (NYSE:XPO) 92.2 16,648.0 2.3 1,663.0 10.0 14,686.3 0.9 8.8 12.4
Median 94.7 % $8,925.8 5.2 % $1,072.4 10.0 % $12,448.3 1.1 x 13.0 x 10.5 x
Mean 90.6 % 5.7 % 11.2 % 1.2 x 11.5 x 10.6 x
Engineering & constructionACS, Actividades de Construcción y Servicios, S.A. (BME:ACS) 87.0 % $43,825.7 (1.0) % $2,458.0 5.6 % $16,572.7 0.4 x 6.7 x 6.5 xArcadis NV (ENXTAM:ARCAD) 98.7 3,897.8 0.9 253.1 6.5 2,805.5 0.7 11.1 9.5Babcock International Group PLC (LSE:BAB) 95.4 5,870.0 (2.4) 454.4 7.7 6,848.3 1.2 15.1 6.0Balfour Beatty plc (LSE:BBY) 88.4 9,685.5 1.9 193.4 2.0 2,623.1 0.3 13.6 7.3Bilfinger SE (DB:GBF) 100.0 4,855.7 (5.6) 145.4 3.0 1,857.0 0.4 NM N/ACIMIC Group Limited (ASX:CIM) 64.3 7,591.8 (16.6) 821.9 10.8 7,168.1 0.9 8.7 6.4Comfort Systems USA, Inc. (NYSE:FIX) 85.6 2,615.3 14.7 208.7 8.0 2,112.8 0.8 10.1 11.2Costain Group PLC (LSE:COST) 39.7 1,530.5 (16.6) 29.1 1.9 214.8 0.1 7.4 1.6DL Holdings CO.,LTD (KOSE:A000210) 73.9 1,438.2 (48.9) 245.2 17.1 3,842.3 2.7 15.7 2.6Daewoo Engineering & Construction Co., Ltd. (KOSE:A047040) 77.3 7,494.1 (11.8) 469.0 6.3 3,255.4 0.4 6.9 3.9Ebara Corporation (TSE:6361) 95.0 4,807.1 0.0 464.0 9.7 2,837.0 0.6 6.1 7.2Fluor Corporation (NYSE:FLR) 45.0 17,317.3 (8.6) (349.9) NM 2,879.3 0.2 NM 7.2Fomento de Construcciones y Contratas, S.A. (BME:FCC) 82.4 7,194.9 2.1 1,148.4 16.0 8,849.2 1.2 7.7 7.2GS Engineering & Construction Corporation (KOSE:A006360) 64.4 9,022.7 (7.1) 692.5 7.7 3,177.6 0.4 4.6 4.8Keller Group plc (LSE:KLR) 95.2 3,046.8 (0.1) 229.8 7.5 1,278.5 0.4 5.6 4.8Kier Group plc (LSE:KIE) 17.6 5,015.7 (8.0) (223.4) NM 465.2 0.1 NM 7.7Koninklijke BAM Groep nv (ENXTAM:BAMNB) 61.0 8,052.9 1.2 100.0 1.2 967.2 0.1 9.7 NMMaire Tecnimont S.p.A. (BIT:MT) 67.3 3,718.3 (12.0) 223.4 6.0 1,373.4 0.4 6.1 7.3Matrix Service Company (NasdaqGS:MTRX) 93.9 1,414.4 (14.0) 64.6 4.6 517.6 0.4 8.0 8.7Monadelphous Group Limited (ASX:MND) 83.1 1,038.9 1.8 61.7 5.9 1,018.5 1.0 16.5 7.9Morgan Sindall Group plc (LSE:MGNS) 99.1 4,067.7 2.8 124.5 3.1 882.3 0.2 7.1 5.4Oil States International, Inc. (NYSE:OIS) 76.7 1,017.4 (11.0) 93.8 9.2 1,283.1 1.3 13.7 11.4Penta-Ocean Construction Co., Ltd. (TSE:1893) 95.8 5,455.4 (3.7) 394.0 7.2 2,299.0 0.4 5.8 6.2Primoris Services Corporation (NasdaqGS:PRIM) 92.7 3,106.3 15.4 226.3 7.3 1,646.8 0.5 7.3 7.2Quanta Services, Inc. (NYSE:PWR) 92.3 12,112.2 4.7 862.4 7.1 7,893.6 0.7 9.2 11.1RPC, Inc. (NYSE:RES) 40.0 1,222.4 (32.3) 125.6 10.3 1,102.7 0.9 8.8 12.8Sumitomo Heavy Industries, Ltd. (TSE:6302) 78.3 8,116.1 2.4 813.3 10.0 3,633.8 0.4 4.5 4.7Team, Inc. (NYSE:TISI) 81.3 1,163.3 (12.7) 48.4 4.2 889.6 0.8 NM 10.3VINCI SA (ENXTPA:DG) 96.6 54,932.1 2.4 8,924.9 16.2 95,173.5 1.7 10.7 9.4
Median 83.1 % $4,855.7 (2.4) % $226.3 7.2 % $2,299.0 0.4 x 8.0 x 7.2 x
Mean 78.2 % (5.6) % 7.5 % 0.7 x 9.1 x 7.3 x
Revenue CAGR (3 Yr)
NTM
EV/Revenue
EV/EBITDA
EV/EBITDA
Public comparables analysis (cont.)
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Quarterly update | Q2 2021 | Industrials
Last Twelve Months
Company (Ticker) LTM
RevenueLTM
EBITDAEBITDA Margin
Enterprise Value ("EV")
($ in Millions)
Metals, Plastics, and Paper PackagingAlcoa Corporation (NYSE:AA) 68.4 % $10,433.0 (6.8) % $1,461.0 14.0 % $6,985.7 0.7 x 4.8 x 3.2 xAptarGroup, Inc. (NYSE:ATR) 91.6 $2,859.7 5.1 $588.9 20.6 $8,379.0 2.9 14.2 15.3 ArcelorMittal (ENXTAM:MT) 71.8 70,615.0 (8.7) 4,419.0 6.3 30,778.2 0.4 7.0 2.7 Avery Dennison Corporation (NYSE:AVY) 97.2 7,070.1 2.3 975.3 13.8 12,811.5 1.8 13.1 15.4 Ball Corporation (NYSE:BLL) 79.0 11,474.0 2.4 1,854.0 16.2 27,998.5 2.4 15.1 15.6 Berry Global Group, Inc. (NYSE:BERY) 80.3 9,722.0 18.2 1,565.0 16.1 16,969.4 1.7 10.8 8.3 Commercial Metals Company (NYSE:CMC) 97.4 5,936.4 11.4 569.4 9.6 3,694.7 0.6 6.5 5.7 Crown Holdings, Inc. (NYSE:CCK) 92.7 11,665.0 9.8 1,670.0 14.3 18,202.2 1.6 10.9 11.8 Graphic Packaging Holding Company (NYSE:GPK) 98.2 6,160.1 11.1 977.4 15.9 8,718.6 1.4 8.9 8.1 Greif, Inc. (NYSE:GEF) 87.8 4,595.0 7.5 659.4 14.4 5,112.3 1.1 7.8 7.1 O-I Glass, Inc. (NYSE:OI) 57.4 6,691.0 (4.8) 1,053.0 15.7 7,758.7 1.2 7.4 6.6 Packaging Corporation of America (NYSE:PKG) 97.6 6,964.3 0.8 1,455.4 20.9 12,523.2 1.8 8.6 9.5 Sealed Air Corporation (NYSE:SEE) 84.5 4,791.1 3.1 909.5 19.0 9,949.6 2.1 10.9 10.5 Silgan Holdings Inc. (NasdaqGS:SLGN) 98.1 4,489.9 6.1 624.1 13.9 6,172.4 1.4 9.9 9.0 Sonoco Products Company (NYSE:SON) 92.7 5,374.2 0.8 750.9 14.0 7,935.5 1.5 10.6 10.2 WestRock Company (NYSE:WRK) 99.0 18,385.3 3.8 2,945.8 16.0 21,008.6 1.1 7.1 6.4
Median 92.1 % $6,827.7 3.5 % $1,015.2 15.0 % $9,334.1 1.4 x 9.4 x 8.6 x
Mean 87.1 % 3.9 % 15.0 % 1.5 x 9.6 x 9.1 x
Specialty chemicalsAlbemarle Corporation (NYSE:ALB) 78.4 % $3,589.4 0.5 % $976.1 27.2 % $9,661.7 2.7 x 9.9 x 27.6 xAshland Global Holdings Inc. (NYSE:ASH) 94.2 2,450.0 (8.1) 430.0 17.6 6,044.3 2.5 14.1 10.6 Axalta Coating Systems Ltd. (NYSE:AXTA) 94.4 4,482.2 (5.6) 893.5 19.9 10,371.8 2.3 11.6 9.7 BASF SE (XTRA:BAS) 90.3 66,564.9 1.0 8,353.7 12.5 90,394.5 1.4 10.8 7.3 Celanese Corporation (NYSE:CE) 95.5 6,297.0 (2.8) 1,366.0 21.7 18,746.0 3.0 13.7 9.1 DuPont de Nemours, Inc. (NYSE:DD) 35.6 21,512.0 (27.7) 5,181.0 24.1 64,198.8 3.0 NM 11.9 H.B. Fuller Company (NYSE:FUL) 98.4 2,897.0 3.3 395.4 13.6 4,631.8 1.6 11.7 10.1 Avient Corporation (NYSE:AVNT) 98.6 2,862.7 3.5 291.9 10.2 4,127.0 1.4 14.1 9.9 PPG Industries, Inc. (NYSE:PPG) 99.4 15,146.0 (1.6) 2,365.0 15.6 36,453.5 2.4 15.4 14.5 Sensient Technologies Corporation (NYSE:SXT) 87.9 1,322.9 (0.9) 210.7 15.9 3,419.7 2.6 16.2 17.3 W. R. Grace & Co. (NYSE:GRA) 87.6 1,958.1 0.3 454.2 23.2 6,466.8 3.3 14.2 11.0
Median 94.2 % $3,589.4 (0.9) % $893.5 17.6 % $9,661.7 2.5 x 13.9 x 10.6 x
Mean 87.3 % (3.5) % 18.3 % 2.4 x 13.2 x 12.6 x
NTM
EV/Revenue
EV/EBITDA
EV/EBITDA
Revenue CAGR (3 Yr)
% of 52 Week High
Page 2:
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6. EQT Infrastructure to acquire First Student and First Transit, https://eqtgroup.com/news/2021/eqt-infrastructure-to-acquire-first-student-and-first-transit-the-market-leading-providers-of-essential-north-american-transportation-services-for-usd-4.6bn/., accessed July 27, 2021.
7. Westlake Buys Boral’s Building Products Arm for $2.2 Billion, https://www.bloomberg.com/news/articles/2021-06-21/westlake-buys-boral-s-building-products-unit-for-2-15-billion
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Sources cited
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